The cash was seized from the premises of General Systems, Future Plus System in Kolkata and Divyajoti Distributors in Siliguri - companies floated by the accused.
About Rs 50 crore in cash was found stashed in 50 sacks and a six-foot steel almirah during raids in West Bengal by the Income Tax Department, which was investigating a lottery racket.
Investigators are now looking for the five suspects who they say are members of the gang and have been charged with fraud and similar money laundering schemes in the past.
The operation was launched in Kolkata and adjoining areas in early hours on Thursday based on inputs provided by the Intelligence Bureau about an alleged fake lottery racket which has its tentacles spread up to Tamil Nadu.
The cash is believed to be the earnings from a Ponzi lottery scheme run by a gang of five, sources told NDTV. Besides the Income Tax Department, the Enforcement Directorate have also joined the investigations.
Of the five suspects, a man named Santiago Martin, who was charged in the past in several cases, is believed to one the central figures. Others include S Nagarajan, Jitendra Mehta and Babla Bhai and L Salai Ganasekaran. Investigators are also looking for a man called U Saha who lives in Siliguri.
The cash was seized from the premises of General Systems, Future Plus System in Kolkata and Divyajoti Distributors in Siliguri - companies floated by the accused.
A highly-placed Kolkata police officer said various teams, consisting of members of STF and its anti-bank fraud section, helped the tax department sleuths conduct the raids at five places in the city.
They said the teams, comprising about 100 members including local police, had to deploy about a dozen counting machines to estimate the cash recovered from two firms identified as G Systems and FP Enterprises.
"Our information suggests that money would have sent out through hawala to Gulf," a senior official associated with the probe told NDTV.